Government Shutdown: UTC, Lockheed Martin Reverses Furlough Plans

Woodrow Bellamy III

The federal government shutdown is entering its second week, but workers at two government contractors, Lockheed Martin and United Technologies Corp., are reversing their plans for furloughs after Congress recalled most of the furloughed Department of Defense (DoD) civilian employees sent home by the shutdown.

(Sikorsky, a UTC company, reversed its decision to furlough 2,000 employees that work on Black Hawk helicopters among other aircraft products at its Hartford, Conn. facility. Photo, courtesy of Sikorsky.)

The federal government entered its seventh day of the shutdown on Monday. On Saturday, Oct. 5, Congress passed the Pay the Military Act, which allows more than 350,000 workers that were furloughed last week to return to work, including Defense Contract Management Agency (DCMA) inspectors who oversee contracted work, such as certifications for military aircraft.

As a result, UTC, the nation's sixth largest government contractor, will reverse the furloughs of 2,000 workers that produce Blackhawk helicopters at its Sikorsky Aircraft unit.

Lockheed Martin also said it would be reducing its planned furloughs from 3,000 to 2,400.

"The Department of Defense’s decision will not eliminate the impact of the government shutdown on the company’s employees and the business. The company will still have approximately 2,400 employees unable to work because the civil government facility where they perform their work is closed, or we’ve received a stop-work order on their DOD or civil government program," Lockheed said in a statement.

The shutdown is still having a major impact on the aerospace industry though, as companies are still unable to buy, sell and deliver new aircraft because of the furloughs of FAA Aircraft Registry workers.

The Aerospace Industries Association (AIA) has identified companies that plan on furloughing more workers if the government shutdown persists through the early portion of October.